New Passive Investor screwed by iii - where to transfer to?

jimmyjones_2

Thanks for everyone's advice, especially Perelandra. I have decided to transfer to Cavendish Online, transferring as cash is mandatory. My forms are in the post.

I have checked with iii and as long as they receive my transfer request before the end of the month and I transfer as cash, there will be no charge.

Unfortunately I will be 'Out of the Market' for the duration of the transfer but that seemed preferable to paying 8% of my small pot in transfer fees. I will be gutted if the market rallies significantly in that period

Since Cavendish haven't played their RDR hand yet I may have to switch again but I think I am moving to the best place for me right now.

Bertieburt

I am moving my iii ISA wrapped funds to bestinvest No Fee's and they will cover the iii exit fee (if there is one) up to £500.
I already have one fund ISA with them so not sure if this is for exisiting customers only but worth a call to 020 7189 9988

dunstonh

that's interesting. why are they happy for dealing charges to vary?

They are happy for all charges to vary. The FSA has said several times that it will not be telling firms what they can or cannot charge. It just wants to remove commissions and hidden payments.

what about the interest that platforms make from cash deposits (on top of whatever they pay to the account holders, if anything)? does the FSA want this charge to be explicit, too? if not, why not?

Commercial decision. Most platforms will pay interest on cash but will also charge against total amount on platform.

are the costs to a platform for holding shares or funds very similar? (and what about for dealing shares or funds?) because if the costs are different, i don't see why the charges shouldn't be.

Funds cost more than shares due to higher regulatory costs. Also, there are further FSA proposals which could raise costs. Such as reports having to be issued each year. KII have to be issued on each purchase shortly as well.

Platforms have more costs than pure share dealing services.